AI assistant
FOM Technologies A/S Interim / Quarterly Report 2023
6179_rns_2023-08-30_53a5f6f5-9294-4123-85d1-b6bea0f04949.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
FOM
TECHNOLOGIES
HI Report
2023
The Board of Directors adopted
the HI Report on:
August 30, 2023
FOM Technologies A/S
Bryggergården 2-12
2770 Kastrup
CVR No. 34715726
Page 2 of 16
CONTENTS
COMPANY DETAILS
3
- COMPANY
3 - BOARD OF EXECUTIVES
3 - BOARD OF DIRECTORS
3 - COMPANY AUDITORS
3
MANAGEMENT'S STATEMENT
4
FINANCIAL HIGHLIGHTS OF THE GROUP
5
MANAGEMENT COMMENTARY
5
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
6
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
7
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
9
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
10
NOTES
11
Page 3 of 16
COMPANY DETAILS
Company
FOM Technologies A/S
Bryggergaarden 2
2770 Kastrup
Central Business Registration no. 34 71 57 26
Registered in: Copenhagen
Board of Executives
Michael Henrik Stadi
Martin Kiener
Board of Directors
Peter Andreas Nielsen, chairman
Birgitte Jespersen Skade
Karina Rothoff Brix
Company auditors
BDO Statsautoriseret revisionsaktieselskab
Havneholmen 29
DK-1561 København V
Central Business Registration no. 20 22 26 70
Page 4 of 16
MANAGEMENT'S STATEMENT
Today the Board of Directors and the Executive Board have discussed and approved the Half year Report of 2023 for the period 1 January – 30 June 2023.
The Report is presented in accordance with the International Financial Reporting Standards as adopted by the EU and additional requirements of the Danish Financial Statements Act.
In our opinion the Consolidated Financial Statements give a true and fair view of the Group's and the Company's assets, liabilities and financial position at 30 June 2023 and of the results of the Group's and the Company's operations and cash flows for the financial year 1 January – 30 June 2023.
The Management Commentary includes in our opinion a fair presentation of the matters dealt with in the Commentary. The interim report has not been audited nor reviewed by the Company's auditor.
Copenhagen, August 30, 2023
Executive Board:
Michael Henrik Stadi
CEO
Martin Kiener
CIO - Head of Innovation & Founder
Board of Directors:
Peter Andreas Nielsen
Chairman
Birgitte Jespersen Skade
Board member
Karina Rothoff Brix
Board member
FINANCIAL HIGHLIGHTS OF THE GROUP
- Total revenue for H1 2023 at T.DKK 36.572 (+69% from T.DKK 21.584 in H1 2022)
- Staff cost for H1 2023 at T.DKK -9.328 (+38% from T.DKK -6.754 in H1 2022)
- EBITDA for H1 2023 at T.DKK -611 (+37% from T.DKK -977 in H1 2022)
- Net cash flow for H1 2023 at T.DKK 430 (T.DKK 14.348 in H1 2022).
- Cash and cash equivalents of 20.3m.DKK
- Total number of full-time employees 30 (+88%) from 16 full-time employees in H1 2022.
- Equity increased to T.DKK 29.571 (+12% from T.DKK 26.388 in H1 2022).
- Pipeline looks promising for the rest of 2023.
MANAGEMENT COMMENTARY
Primary activities
FOM Technologies A/S's primary activities are sale of machinery and equipment for material research and production.
Development in the company's activities and financial conditions:
Following a very strong 2022 financial report, the company's activity continues to develop as the business case and commercial journey described in the IPO memorandum is materializing. FOM Technologies significantly increased total revenue in the first half of 2023 compared to the first half of 2022, with EBITDA at roughly the same level as the same period last year, despite heavy investment in staff, new HQ, digitalisation and innovation. The company's equity remains strong and solid.
The expected future development
The company expects that H2 2023 will follow the same development and trend as H1 2023. As previously announced, FOM Technologies expects to apply for admission to trading on the Nasdaq Main Market – Small Cap during 2023. This is still the company's ambition and time horizon, and the initial discussions with relevant players have been initiated. As a part of the process towards the Nasdaq Main Market, FOM Technologies published the Annual Report 2022 in accordance with International Financial Reporting Standards (IFRS). Naturally, this also applies to this H1 report that is the first half-year report published in accordance with the IFRS. Financial guidance for the 2023 Revenue and EBITDA has been estimated to the best of our abilities taking into consideration all the risks and uncertainties from our risk management assessment. As per 30th June 2023 the Company's guidance was:
The company's previous guidance for 2023:
Revenue: In the range of DKK 55 million to DKK 60 million
EBITDA: In the range of DKK 2 million to DKK 5 million
Due to a receival of a large customer order in July month the Company has changed its guidance. At the time of the adoption of the H1 2023 report the Company has the following guidance:
The company's guidance for 2023:
Revenue: In the range of DKK 65 million to DKK 75 million
EBITDA: In the range of DKK 2 million to DKK 5 million
Additional information
| H1 2023 | H1 2022 | |
|---|---|---|
| Full-Time Employees | 30 | 16 |
| Total Issued Shares | 7.798.914 | 7.778.914 |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
| Note | 2023 H1 DKK | 2022 H1 DKK | |
|---|---|---|---|
| 4 | Revenue | 36.572.249 | 21.583.782 |
| Other operating income | 828.100 | 257.293 | |
| Total income | 37.400.349 | 21.841.075 | |
| Costs of goods sold | -19.137.584 | -13.282.610 | |
| Other external expenses | -9.546.122 | -2.781.239 | |
| Gross Profit | 8.716.643 | 5.777.226 | |
| Staff costs | -9.327.909 | -6.753.898 | |
| Profit before depreciation, interest, and tax | -611.266 | -976.672 | |
| Amortisation, depreciation, and impairment | -782.095 | -77.018 | |
| Operating Profit | -1.393.361 | -1.053.690 | |
| Financial income | 98.037 | 302.385 | |
| Financial expenses | -319.891 | -196.836 | |
| Profit before tax | -1.615.215 | -948.141 | |
| Tax on profit/loss for the year | - | - | |
| Profit for the year | -1.615.215 | -948.141 | |
| Other comprehensive income | 2023 H1 DKK | 2022 H1 DKK | |
| --- | --- | --- | |
| Items that may be reclassified to profit or loss: | |||
| Exchange differences on translation of foreign operations | 6.744 | - | |
| Total comprehensive income for the period, net of tax | -1.608.471 | -948.141 | |
| Total comprehensive income for the period is attributable to: | 2023 H1 DKK | 2022 H1 DKK | |
| --- | --- | --- | |
| Owners of FOM Technologies A/S | -1.597.399 | -922.174 | |
| Non-controlling interests | -11.072 | -25.967 | |
| -1.608.471 | -948.141 |
Earnings per share for profit attributable to the ordinary equity holders of FOM
| 2023 H1 DKK | 2022 H1 DKK | |
|---|---|---|
| Outstanding shares | 7.798.914 | 7.778.914 |
| Basic earnings per share | -0,21 | -0,12 |
| Diluted earnings per share | -0,20 | -0,12 |
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
| Note | 30.06.2023
DKK | 31.12.2022
DKK |
| --- | --- | --- |
| Software | 340.031 | 201.105 |
| Acquired licenses | - | 144.732 |
| Acquired trademarks | 412.846 | 260.087 |
| Development projects completed | 890.373 | 633.356 |
| Development projects in progress | 204.793 | 560.734 |
| INTANGIBLE ASSETS | 1.848.043 | 1.800.014 |
| Other fixtures and fittings, tools, and equipment | 1.478.350 | 74.332 |
| Right- of- use assets | 8.976.333 | - |
| PROPERTY, PLANT AND EQUIPMENT | 10.454.683 | 74.332 |
| Deposits | 984.000 | 1.125.500 |
| FINANCIAL ASSETS | 984.000 | 1.125.500 |
| TOTAL NON-CURRENT ASSETS | 13.286.726 | 2.999.846 |
| Raw materials | 705.560 | 472.250 |
| Work-in-progress | 6.191.119 | 6.807.666 |
| Finished Goods | 6.726.759 | 5.528.506 |
| INVENTORIES | 13.623.438 | 12.808.422 |
| Trade receivables | 3.935.095 | 14.775.532 |
| Contract work in progress | 3.502.412 | 576.930 |
| Other receivables | 863.288 | 1.286.915 |
| Prepayments | 1.805.949 | 899.510 |
| Cash | 20.349.670 | 19.919.258 |
| TOTAL CURRENT ASSETS | 44.079.852 | 50.266.567 |
| TOTAL ASSETS | 57.366.578 | 53.266.413 |
Page 7 of 16
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION continued
| Note | | 30.06.2023
DKK | 31.12.2022
DKK |
| --- | --- | --- | --- |
| | Share capital | 779.891 | 777.891 |
| | Retained earnings | 23.897.112 | 25.400.587 |
| | Reserve for development costs | 1.095.166 | 1.194.090 |
| | Other capital reserve | 3.849.736 | 3.347.288 |
| | Non-controlling interests | -51.188 | -40.116 |
| | EQUITY | 29.570.717 | 30.679.740 |
| | Deferred Tax Liability | 126.816 | 126.816 |
| | Other payables | 283.739 | 283.739 |
| | Other provisions | 250.000 | 250.000 |
| | Deferred income | 4.931.164 | 2.422.831 |
| 7 | Lease liability | 7.602.718 | - |
| | NON-CURRENT LIABILITIES | 13.194.437 | 3.083.386 |
| | Other credit institutions | 449.975 | 313.403 |
| | Trade payables | 3.741.534 | 5.543.504 |
| | Tax payables | - | 6.624 |
| | Other payables | 29.038 | 2.367.375 |
| | Other provisions | 521.952 | - |
| 7 | Lease liability | 1.450.118 | - |
| | Deferred income | 793.682 | 1.621.782 |
| | Contract work in progress | - | 2.285.732 |
| | Prepayments | 7.615.125 | 7.364.867 |
| | CURRENT LIABILITIES | 14.601.424 | 19.503.287 |
| | LIABILITIES | 27.795.861 | 22.586.673 |
| | TOTAL EQUITY AND LIABILITIES | 57.366.578 | 53.266.413 |
Page 8 of 16
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
| Share Capital | Share Premium | Retained earnings | Other Capital reserve | Total | Non-controlling interests | Total Equity DKK | |
|---|---|---|---|---|---|---|---|
| Equity at 1/1 2023 | 777.891 | 25.400.587 | 4.541.378 | 30.719.856 | -40.116 | 30.679.740 | |
| Profit for the year | -1.604.143 | -1.604.143 | -11.072 | -1.615.215 | |||
| Other comprehensive income | 6.744 | 6.744 | 6.744 | ||||
| Total comprehensive income for the period | -1.597.399 | -1.597.399 | -11.072 | -1.608.471 | |||
| Transactions with owners in their capacity as owners: | |||||||
| Capital increase | 2.000 | 398.000 | 400.000 | 400.000 | |||
| Transfers | -398.000 | 398.000 | - | - | |||
| Costs related to equity transactions | -3.000 | -3.000 | -3.000 | ||||
| Development costs | 98.924 | -98.924 | - | - | |||
| Share-based payments | 102.448 | 102.448 | 102.448 | ||||
| Equity at 30/6 2023 | 779.891 | - | 24.297.112 | 4.544.902 | 29.621.905 | -51.188 | 29.570.717 |
| Share Capital | Share Premium | Retained earnings | Other Capital reserve | Total | Non-controlling interests | Total Equity DKK | |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Equity at 1/1 2022 | 741.941 | 10.822.299 | 2.519.028 | 14.083.268 | 4.101 | 14.087.369 | |
| Profit for the period January – June 2022 | -922.174 | -922.174 | -25.967 | -948.141 | |||
| Other comprehensive income | - | - | - | ||||
| Total comprehensive income for the period | -922.174 | -922.174 | -25.967 | -948.141 | |||
| Transactions with owners in their capacity as owners: | |||||||
| Capital increase | 35.950 | 13.265.624 | 13.301.574 | 13.301.574 | |||
| Transfers | -13.265.624 | 13.265.624 | - | - | |||
| Costs related to equity transactions | -775.301 | -775.301 | -775.301 | ||||
| Development costs | -397.900 | 397.900 | - | - | |||
| Share-based payments | 722.010 | 722.010 | 722.010 | ||||
| Equity at 30/6 2022 | 777.891 | - | 21.992.548 | 3.638.938 | 26.409.377 | -21.866 | 26.387.511 |
Page 9 of 16
Page 10 of 16
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
| | H1 2023
DKK | H1 2022
DKK |
| --- | --- | --- |
| Profit/loss before financial items and tax (EBIT) | -1.393.361 | -1.053.690 |
| Depreciation and amortization | 782.095 | 77.018 |
| Share-based payments | 102.448 | 722.010 |
| Change in inventories | -815.016 | -4.290.636 |
| Change in receivables | 7.432.143 | 4.703.494 |
| Change in trade payables | -3.980.220 | 2.154.218 |
| CASH FLOWS FROM PRIMARY ACTIVITIES | 2.128.089 | 2.312.414 |
| Financial income received | 98.037 | 302.385 |
| Financial costs paid | -313.145 | -184.294 |
| CASH FLOW FROM OPERATION ACTIVITIES | 1.912.981 | 2.430.505 |
| Acquisition of intangible assets including payments of development costs | -307.813 | -601.683 |
| Acquisition of property, plant and equipment | -1.498.885 | - |
| Acquisition of fixed asset investments | 141.500 | -79.000 |
| CASH FLOW FROM INVESTING ACTIVITIES | -1.665.198 | -680.683 |
| Proceeds from capital increase | 400.000 | 13.301.574 |
| Principal repayments on leases | -350.943 | - |
| Costs incurred during changes of contributed capital | -3.000 | -775.301 |
| Other credit institutions | 136.572 | 72.239 |
| CASH FLOW FROM FINANCING ACTIVITIES | 182.629 | 12.598.512 |
| Currency adjustments | | |
| NET CASH FLOW FOR THE PERIOD | 430.412 | 14.348.334 |
| | H1 2023
DKK | H1 2022
DKK |
| Cash and cash equivalents - beginning of the year | 19.919.258 | 4.848.843 |
| Net cash flow for the period | 430.412 | 14.348.334 |
| CASH AND CASH EQUIVALENTS BY END OF PERIOD | 20.349.670 | 19.197.177 |
| Cash and cash equivalents | 20.349.670 | 19.197.177 |
| TOTAL CASH AND CASH EQUIVALENTS BY END OF PERIOD | 20.349.670 | 19.197.177 |
Page 11 of 16
NOTES
- Accounting policies and basis for preparation
1.1 New and amended standards adopted by the Group
1.2 Impact of standards issued but not yet applied by the Group - Significant judgments
- Operating segments
- Revenue from contracts with customers
- Financial assets and financial liabilities
- Property Plant & Equipment
- Interest-bearing liabilities
- Events after the reporting date
Page 12 of 16
Note 1 Accounting policies and basis for preparation
This condensed consolidated interim financial report for the half-year reporting period ended 30 June 2023 has been prepared in accordance with IAS 34 Interim Financial Reporting.
The interim report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 31 December 2022.
The annual report for the year 31 December 2022 provides a full description of the Group's accounting policies. The accounting policies applied in this H1 2023 report are consistent with those of the annual report for the year ended 31 December 2022, with the following exception:
Leases
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present value of the following lease payments:
- fixed payments (including in-substance fixed payments), less any lease incentives receivable
- variable lease payments that are based on an index or a rate, initially measured using the index or rate as at the commencement date
- amounts expected to be payable by the group under residual value guarantees
- the exercise price of a purchase option if the group is reasonably certain to exercise that option
- payments of penalties for terminating the lease, if the lease term reflects the group exercising that option.
Lease payments to be made under reasonably certain extension options are also included in the measurement of the liability.
Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.
The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities.
Right-of-use assets are measured at cost comprising the following:
- the amount of the initial measurement of lease liability
- any lease payments made at or before the commencement date less any lease incentives received
- any initial direct costs, and
- restoration costs.
Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets
Note 1.1 New and amended standards adopted by the Group
A number of amended standards became applicable for the current reporting period. The Group did not have to change its accounting policies or make retrospective adjustments as a result of adopting these amended standards.
Page 13 of 16
Note 1.2 Impact of standards issued but not yet applied by the Group
The IASB has issued several new standards and amendments not yet in effect or endorsed by the EU and therefore not relevant for the preparation of the H1 2023 interim financial report. None of these are currently expected to have any significant impact on the financial statements of the Group when implemented.
Note 2 Significant judgments
As part of the preparation of the financial statements, Management makes a number of accounting estimates and assumptions as a basis for recognizing and measuring the Group's assets, liabilities, income, and expenses as well as judgements made in applying the Group's accounting policies. The estimates, judgements and assumptions made are based on experience gained and other factors that are considered sensible by Management in the circumstances, but which are inherently subject to uncertainty and volatility.
Significant accounting estimates, judgements, and expenses made in applying the Group's accounting policies are disclosed in Note 2 in the consolidated financial statements for the year ended 31 December 2022.
Note 3 Operating segments
The Group serves one segment, comprising the parent company FOM Technologies A/S, which is inherent to how the Executive Management considers and operates the Group. The main nature of the business is development and production of machinery equipment for material research entities worldwide.
The segment performance is evaluated by the CODM monthly based on profit or loss for the single segment and is measured consistently with profit or loss in the financial statements of the Group.
Profit or loss of the single reporting segment (FOM Technologies A/S) are shown below:
| H1 2023 | H1 2022 | |
|---|---|---|
| Profit/Loss before tax | -1.488.572 | -1.419.543 |
Executive Management is the Chief Operating Decision Maker (CODM). Executive Management, which is made up of the senior leadership across the respective divisions, are responsible for the strategic decision making and for the monitoring of the operating results of the single operating segment for the purpose of performance assessment.
The CODM furthermore monitors revenue based on product lines. Refer to note 4 for a disaggregation of revenue on this basis. The Group has not reported revenue attributed to foreign countries as the costs to develop this information would be excessive.
Non-current operating assets are all geographically located in Denmark.
Page 14 of 16
Note 4 Revenue from contracts with customers
The Group derives revenue from the transfer of goods and services over time and at a point in time in the following revenue categories:
| 2023 H1 DKK | 2022 H1 DKK | ||
|---|---|---|---|
| Revenue recognized at a point in time: | Machines | 22.792.292 | 17.892.516 |
| Additional products | 7.600.483 | 1.242.530 | |
| Total | 30.392.775 | 19.135.046 | |
| Revenue recognized over time: | Machines | 5.091.213 | 2.333.649 |
| Services & Other | 1.088.261 | 115.087 | |
| Total | 6.179.474 | 2.448.736 | |
| Total Revenue | 36.572.249 | 21.583.782 |
Sale of standardized machinery and equipment
Revenue related to the sale of standardized machinery and equipment is recognized at a point in time. This is usually when the customer has received the machinery. However, if a contract includes a customer acceptance clause, revenue is not recognized before the customer acceptance is received. Payments follow a payment schedule, for which a portion is paid upfront.
Sale of customized machinery and equipment
Revenue related to the sale of customized machinery is recognized over time using a cost-to-cost measure. Revenue is recognized over time because the machinery being transferred is highly specialized to the customer's specifications (that is, the machinery has no alternative use).
For contracts for customized machinery, the Group always has an enforceable right to payment for performance completed to date. The consideration is paid in accordance with a contract specific payment schedule, for which a portion is paid upfront.
| Note | 5 | Financial assets and financial liabilities | 30.6.2023 DKK | 31.12.2022 DKK |
|---|---|---|---|---|
| Financial assets at amortized cost: | ||||
| Trade receivables | 3.935.095 | 14.775.532 | ||
| Other receivables | 863.288 | 1.286.915 | ||
| Deposits | 984.000 | 1.125.500 | ||
| Cash and cash equivalents | 20.349.670 | 19.919.258 | ||
| Total | 26.132.053 | 37.107.205 | ||
| Financial liabilities at amortized cost: | ||||
| Trade payables | 3.741.534 | 5.543.504 | ||
| Debt to credit institutions | 449.975 | 313.403 | ||
| Other payables | 29.038 | 2.367.375 | ||
| Total | 4.220.547 | 8.224.282 |
The carrying amounts are assessed as equivalent to the fair value of the assets and liabilities.
Page 15 of 16
Note 6 Property Plant & Equipment
| Property, Plant and Equipment | Right-of-Use assets DKK | Other fixtures and fittings, tools and equipment | Total |
|---|---|---|---|
| Cost at 1/1 2023 | - | 167.762 | 167.762 |
| Additions for the period | 9.403.779 | 1.498.885 | 10.902.664 |
| Disposals for the period | - | - | - |
| Cost at 30/6 2023 | 9.403.779 | 1.666.647 | 11.070.426 |
| Depreciations and impairment as at 1/1 2023 | - | 93.429 | 93.429 |
| Depreciations for the period | 427.446 | 94.868 | 522.314 |
| Reversal regarding disposals for the period | - | - | - |
| Depreciations and impairment at 30/6 2023 | 427.446 | 188.297 | 615.743 |
| Carrying amount at 30/6 2023 | 8.976.333 | 1.478.350 | 10.454.683 |
The Group's leasing activities and how these are accounted for
During the first half year 2023, the Group entered into a number of lease agreements, involving leasing of office premises and parking spots. The average lease maturity is 5.5 years, but may have extensions options.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily determined, which is generally the case for leases in the Group, the lessee's incremental borrowing rate is used, being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of similar value to the right-of-use asset in a similar economic environment with similar terms, security and conditions.
If a readily observable amortising loan rate is available to the individual lessee (through recent financing or market data) which has a similar payment profile to the lease, then the Group use that rate as a starting point to determine the incremental borrowing rate.
The Group is exposed to potential future increases in variable lease payments based on an index or rate, which are not included in the lease liability until they take effect. When adjustments to lease payments based on an index or rate take effect, the lease liability is reassessed and adjusted against the right-of-use asset.
Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are recognized on a straight-line basis as an expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less.
Page 16 of 16
Note 7 Interest-bearing liabilities
| | 30.06.2023
DKK | 31.12.2022
DKK |
| --- | --- | --- |
| Lease liabilities* | 9.052.836 | - |
| Other payables | 29.038 | 2.367.375 |
| Tax payables | - | 6.624 |
| Other credit institutions | 449.975 | 313.403 |
| Total other payables | 9.531.849 | 2.687.402 |
*Lease liabilities maturity
| Within 1 year | 1.450.118 | - |
|---|---|---|
| From 1 to 5 years | 6.568.182 | - |
| More than 5 years | 1.034.536 | - |
| Total lease liability | 9.052.836 | - |
When measuring the lease liability, FOM Technologies has applied an incremental borrowing rate to discount future lease payments on 6 % p.a.
Note 8 Events after the reporting date
No events of material importance for the Group have occurred after the end of the half year 2023.